# Prop. Treas. Reg. § 1.6041A-1: Returns regarding payments of remuneration for services and certain direct sales.

Proposed regulation, not in force. REG-113229-25, 91 FR 20599, published 2026-04-17 <https://www.federalregister.gov/documents/2026/04/17/2026-07519/increase-in-threshold-for-requiring-information-reporting-with-respect-to-certain-payees-extension>. Interprets 26 U.S.C. § 6041A.

Par. 7. Section 1.6041A-1 is amended by revising paragraphs (d)(4)(ii) and (iii) to read as follows:

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(d) * * *

(4) * * *

(ii) Examples. The provisions of this paragraph (d)(4) are illustrated by the following examples:

(A) Example 1. In 2026, service recipient A, in the course of its business, pays by credit card remuneration of $2,500 to service provider B for services performed by B. B is one of a network of unrelated persons that has agreed to accept A's credit card as payment under an agreement that provides standards and mechanisms for settling the transactions between a merchant acquiring bank and the persons who accept the cards. Merchant acquiring bank Y is responsible for making the payment to B. Under paragraph (d)(4)(i) of this section, A is not required to file an information return under section 6041A(a) with respect to the transaction because Y, as the payment settlement entity for the payment card transaction, is required to file an information return under section 6050W.

(B) Example 2. In 2026, service recipient A, in the course of business, pays through a third party payment network $2,500 to B, a repairman, through a third party payment network. B is one of a substantial number of persons who have established accounts with Y, a third party settlement organization that provides standards and mechanisms for settling the transactions and guarantees payments to those persons for goods or services purchased through the network. Y is responsible for making the payment to B. Under paragraph (d)(4)(i) of this section, A is not required to file an information return under section 6041A(a) with respect to the transaction because the transaction is a third party network transaction that is subject to reporting under section 6050W. Solely for purposes of determining whether the transaction is subject to reporting under section 6041A, the de minimis threshold for third party network transactions in § 1.6050W-1(c)(4) is disregarded.

(iii) Applicability date. This section applies to payments made by payment card or through a third party payment network on or after January 1, 2026.

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